In particular the pre-budget report:
- ensures financial stability, with further action to meet the global economic challenges;
- supports business, through an immediate support package for business adversely affected by global economic conditions, and reforms that continue to promote the long-term competitiveness of the UK;
- helps people and ensures fairness, by providing support for low and middle income households now when they need it, helping homeowners, tackling child poverty, supporting employment, and delivering security for all in retirement;
- improves public services, locking in investment alongside public service reform, while ensuring the economy is supported in the short term and public finances remain sound in the medium term; and
- delivers on the environmental goals, such as climate change and the need for greater energy efficiency, while supporting low carbon growth.
The Chancellor also announced a package of measures targeted at supporting small businesses to access the capital and manage the cash flow they require, which may be of particular benefit to the 512,455 small and medium sized enterprises in the East of England.
The Government also announced a package of housing measures to support the objectives of promoting the long-term stability of the housing market and supporting homeowners facing difficulties. Bringing forward of investment in new social housing stock will help the 5,900 households deemed in priority need of housing in the East of England.
As part of a package aimed at stimulating the economy, there will be a temporary reduction in the standard rate of VAT to 15 per cent from 1 December 2008 until 31 December 2009 to provide further support for growth and incomes during the economic downturn. This is the equivalent, for the average household, of £275 a year for extra spending.
The Government is also bringing forward £3bn of capital spending from 2010-11 to 2008-09 and 2009-10. Bringing forward valuable public investment will impact directly on economic activity in the UK, in particular supporting the construction sector, which is expected to be disproportionately affected by the economic downturn.
The Chancellor also announced a substantial package of measures to ensure that those facing redundancy and those seeking employment are helped back into work as quickly and efficiently as possible. This will help with the 30,028 job vacancies that were notified to Jobcentre Plus in the East Of England in October 2008.
Harriet Harman MP, Leader of the House of Commons and Barbara Follett MP, Minister for the East of England met regional partners today (25 November 2008) to discuss the implications for the region.
Barbara Follett said:
"There are groups in the East of England who are feeling the economic downturn more acutely than most. I welcome the new support for them outlined by the Chancellor in the Pre-Budget Report. The Government is setting out the help it intends to give to low and middle income taxpayers; homeowners facing financial difficulty and those at risk of redundancy".
Further information on the pre-budget report, including what it means for the East of England can be found on the Treasury's pre-budget report website.
